Odfjell Sells Stake in Jiangyin Terminal
Norwegian shipping and tank terminal company Odfjell SE has finalized the sale of its stake in Odfjell Terminals Jiangyin (OTJ), China.
The indirect 55% equity interest in OTJ has been sold by Odfjell Terminals Asia Holding to Yangzijiang Shipbuilding (Holdings) for a price of about USD 46 million.
The transaction will result in a capital gain expected to be booked in Q3, and net proceeds to Odfjell estimated at USD 21 million, the company said.
In May 2018, Odfjell revealed that American private equity firm Lindsay Goldberg (LG) was considering the sale of its 49% shareholding in Odfjell Terminals BV. After LG completed the sales of its shareholdings in the US and European terminals, LG is now in the process of selling its shareholding in the Asian terminals.
Connected with this, Odfjell has decided to tag along on LG’s sale of its indirect shareholding in OTJ.
Commenting on the transaction, Kristian Mørch, CEO of Odfjell, said:
“We are pleased to have concluded the sale of our Jiangyin terminal and its jetty at what we believe is a fair valuation that is a testimony to the strength and quality of the investments made since 2007.”
“This divestment is in line with our strategy to grow and focus on chemical terminals in locations where we can harvest synergies with Odfjell Tankers.”
With a total storage capacity of 99,800 cbm and 22 tanks, OTJ has eight berths for coasters, barges or deep-sea tankers of up to 50,000 dwt. It is located in the Jiangyin Economic Development Zone on the south bank of the Yangtze River, approximately 150 km west of Shanghai and 12 hours sailing by ship from the entrance to the important Yangtze River.